Question 1

Anita has gone to the same hair salon for the past ten years.She believes that her stylist,the salon owner,does a better job of cutting and styling her hair than anyone else could.Other salons have opened closer to Anita's home,some offering more plush facilities or lower prices,but she isn't tempted to switch.Anita's attitude toward the salon is an example of:

Accepted Answer

Anita's loyalty to the same hair salon for ten years demonstrates her customer loyalty. She is not tempted by other salons that may offer more attractive options because she has developed a strong relationship with her stylist and values the quality of service she receives. This is a key aspect of customer loyalty, which is important for businesses looking to retain their customer base.

Question 2

When a pharmaceutical company develops a new medication,it typically applies for a patent in order to prevent competitors from developing copycat products for several years.Pharmaceutical companies apply for patents in order to establish:

Accepted Answer

By obtaining a patent, a pharmaceutical company can establish a sustainable competitive advantage by preventing competitors from developing copycat products for a certain number of years, thereby allowing the company to maintain its market share and potentially earn higher profits from its innovative product.

Therefore, options A), B), D) do not apply as they do not directly relate to the benefits that a patent can bring to a pharmaceutical company. Option E) is not necessarily correct because while operational excellence, market penetration, and an efficient supply chain may be important strategies for a pharmaceutical company, they are not directly related to the purpose of obtaining a patent.

Question 3

One example of a customer loyalty program is:

Accepted Answer

The "frequent diner" card at a restaurant encourages customers to continue dining at the establishment by offering a reward for repeat visits and purchases. This program builds customer loyalty and may even incentivize customers to spend more in order to reach the reward threshold.

Question 4

Some universities offer online degree programs,competing with traditional colleges based on the convenience of taking online courses.These online programs are pursuing which macro strategy?

Accepted Answer

The answer of Some universities offer online degree programs,competing with...

Question 5

Fourteenth National Bank prides itself on offering better service than any of its competitors.If this is accurate,and if customers recognize and value Fourteenth National's superior service,the bank creates and delivers value through:

Accepted Answer

Fourteenth National Bank is creating and delivering value through customer excellence because it is providing better service than its competitors, and customers recognize and value this superior service.

Question 6

In a SWOT analysis,increasing gasoline prices would represent a potential __________ for manufacturers of electric cars.

Accepted Answer

Increasing gasoline prices would represent an opportunity for manufacturers of electric cars as it would increase the demand for their products, as consumers would seek more fuel-efficient and environmentally friendly options. This could lead to increased sales and market share for electric car manufacturers.

Question 7

Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to providing fast,courteous service in a clean,professional looking environment.Gerald's has used this strategy for over 40 years,expanding to 15 outlets.Gerald's Tire Store has created a ___________________ to create and deliver value and to develop a sustainable competitive advantage.

Accepted Answer

Gerald's Tire Store's focus on providing fast, courteous service in a clean, professional-looking environment sets the tone for its overall business strategy, or macro strategy. This strategy aims to create and deliver value to customers in a way that sets the company apart from its competitors, thereby developing a sustainable competitive advantage. It is not a segmentation, market development, or diversification strategy, nor is it a set of metrics.

Question 8

Which of the following is the third step in the strategic marketing planning process?

Accepted Answer

The third step in the strategic marketing planning process is to identify and evaluate opportunities. This involves conducting market research, analyzing customer needs and preferences, and assessing the competition to identify potential areas for growth and development. Once opportunities have been identified, they can be prioritized and evaluated based on their potential impact and feasibility.

Question 9

Introducing newly developed products or services to a market segment the company is not currently serving is called:

Accepted Answer

The answer of Introducing newly developed products or services to...

Question 10

Most banks implement customer retention programs aimed at their best customers.They do this because they know that retaining customers usually results in:

Accepted Answer

Retaining customers typically results in increased long term profits. Banks invest in customer retention programs because it is more expensive to acquire new customers than to retain existing ones. Additionally, loyal customers may provide referrals or cross-sell opportunities, further increasing profits.

Question 11

After defining the business mission,what should a firm do next to develop a marketing plan?

Accepted Answer

The answer of After defining the business mission,what should a...

Question 12

In mid-2010,Hewlett-Packard Company (HP)acquired Palm Computing,Inc.,a manufacturer of personal devices and smart phones.Before deciding to acquire the company,strategic planners at HP spent time thinking about how Palm and HP would "fit" together,and how the acquisition might change HP's core goals and objectives.The strategic planners were engaged in the ____________ step of the strategic marketing planning process.

Accepted Answer

The strategic planners were engaged in defining the business mission, which involves considering how the acquisition aligns with the company's goals and objectives.

Question 13

Customer retention programs are based on what concept?

Accepted Answer

Customer retention programs are based on the concept that customer relationships should be viewed from a lifetime value perspective. This means that instead of focusing solely on maximizing profits in the first few months of a customer relationship, companies should strive to retain customers over the long-term and maximize their value over the lifetime of the relationship. This approach requires a focus on building strong customer relationships and providing excellent customer service, which can help to build loyalty and encourage repeat business.

Question 14

A former advertising campaign for Geico Insurance used the slogan,"So easy,even a caveman could do it" to emphasize the ease of buying insurance on Geico's website.This campaign was part of Geico's:

Accepted Answer

The advertising campaign using the slogan "So easy, even a caveman could do it" is an example of Geico's positioning strategy, which sought to communicate the ease and simplicity of its online insurance-buying process. The slogan was designed to position Geico as a user-friendly and accessible insurer.

Question 15

Zara is a women's clothing retailer headquartered in Spain,with stores located in many countries.Zara has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences.Every aspect of Zara's operation is optimized for this system,making it difficult for competitors like The Gap to duplicate.Zara has established:

Accepted Answer

Zara's "quick response" system and optimization of all aspects of their operation for this system has given them a sustainable competitive advantage, making it difficult for competitors like The Gap to duplicate.

Question 16

Maryam called her auto insurance agent to renew her policy.The agent told her about new types of insurance that are now available--to cover her apartment,or even the engagement ring she just got from her fiancé.The agent was pursuing a ________________ growth strategy.

Accepted Answer

The answer of Maryam called her auto insurance agent to...

Question 17

Over the last few months,Juan and his colleagues have analyzed the current business situation,and then identified target markets for his firm's personal care products.Finally,they developed the products,prices,distribution and promotion that should appeal to each of those target markets.In doing so,Juan has also identified what he believes is an advantage his competitors cannot match.Juan and his colleagues have been developing:

Accepted Answer

Juan and his colleagues have developed a marketing strategy by analyzing the current business situation, identifying target markets, developing products, prices, distribution, and promotion that should appeal to each target market, and identifying a competitive advantage.

Question 18

Sodexo is a corporation that manages school cafeterias,university dining halls,mess halls at military bases,concession stands at sports arenas,and other large-scale food service facilities.If Sodexo were to begin to sell individual frozen meals in supermarkets,it would be pursuing a __________ growth strategy.

Accepted Answer

The answer of Sodexo is a corporation that manages school...

Question 19

Abercrombie & Fitch,a hip clothing retailer,includes a "SHARE" link on the product pages of its website.This link encourages an Abercrombie customer to post a link (perhaps showing a new style of jeans)on Facebook or Twitter.Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers)will click the link,visit the page,and make purchases.This is an example of a __________ growth strategy.

Accepted Answer

This is an example of a market penetration strategy, as it involves encouraging existing customers to share products with their network to increase sales among a similar customer base.

Question 20

Singapore Airlines seeks to differentiate itself from competing airlines,in part through innovative design of its airplane seats and in-flight entertainment systems.Through continuous innovation in these areas,Singapore Airlines is pursuing a __________ macro strategy.

Accepted Answer

Singapore Airlines' focus on innovative design of airplane seats and in-flight entertainment systems reflects a product excellence macro strategy.

Quiz 2: Developing Marketing Strategies and a Marketing Plan